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Results of Market Failure in Maine
WellPoint Inc., Maine’s biggest health insurer,
holds 78 percent of the state market. Together
with Aetna Inc., they control 88 percent of the
market.1
• From 2004 to 2007 Anthem Health Care,
WellPoint Inc.’s Maine subsidiary, saw profit
grow by 89 percent, from $40 million to $76
million, although its membership grew by
only 2.4 percent.2
• Health insurance premiums for Maine working
families have skyrocketed, increasing 90
percent from 2000 to 2007.3
• For family health coverage in Maine during
that time, the average annual combined
premium for employers and employees rose
from $6,915 to $13,117.4
• For family health coverage in Maine from
2000 to 2007, the average employer’s portion
of annual premiums rose 87 percent, while the
average worker’s share grew by 96 percent.5
• From 2000 to 2007, the median earnings of
Maine workers increased 17 percent, from
$22,163 to $25,876. During that time health
insurance premiums for Maine working
families rose 5.4 times faster than median
earnings.6
When a firm has more than a 42 percent share
of a single market, the U.S. Justice Department
considers that market to be “highly concentrated.”
This means that an insurer could raise premiums
and/or reduce the variety of plans or quality of
services offered to customers with impunity.7
